OPAL Fuels Inc. (“OPAL Fuels” ) (Nasdaq: OPAL), a vertically integrated leader in the capture and conversion of biogas into low carbon intensity RNG and Renewable Power, announced results for the three and six months ended June 30, 2024.
“Second quarter results were solid and we remain on target to achieve our 2024 financial objectives,” said Adam Comora, Co-Chief Executive Officer. “We achieved Adjusted EBITDA of $18.9 million, driven by growing RNG production, supportive RIN prices and improved margins in our Fuel Stations Services segment. A substantial majority of our expected RIN sales for this year are now contracted at favorable pricing and we remain on schedule for completing construction of our RNG projects coming online this year,” continued Comora.
“We are executing on our growth initiatives and are pleased to announce the addition of the Burlington RNG facility to our in-construction portfolio, bringing the combined number of RNG projects in construction and operation to 16. This is the second project with our joint venture partner South Jersey Industries,” said co-CEO Jonathan Maurer. “OPAL's share of Burlington represents an additional 0.46 million MMBtu of annual design capacity bringing our total operating and in-construction RNG portfolio annual design capacity to 10.8 million MMBtu. Burlington and our previously announced Cottonwood project together total 1.1 million MMBtu of new annual RNG production design capacity placed in construction against our 2.0 million MMBtu target for 2024.”
“Market fundamentals continue to be strong for the capture and productive use of biogenic methane emissions,” continued Comora. “We believe our team and our vertically integrated business model position us well to capitalize on these opportunities.”
Financial Highlights
- Revenue for the three and six months ended June 30, 2024, was $71.0 million and $135.9 million, an increase of $15.9 million or 29% and $37.9 million or 39%, compared to the same periods last year.
- Our share of revenues from equity method investments, not included above for three and six months ended June 30, 2024, were $11.2 million and $22.0 million, compared to $2.1 million and $5.8 million, in the same periods prior year.
- Net income for the three and six months ended June 30, 2024, was $1.9 million and $2.6 million, compared to $114.1 million and $106.7 million in the same periods last year.
- Basic net loss per share attributable to Class A common shareholders for the three and six months ended June 30, 2024 was $(0.01) and $(0.02), compared to basic net income per share of $0.66 and $0.60, for the three and six months ended June 30, 2023
- Adjusted EBITDA2 for the three and six months ended June 30, 2024, was $18.9 million and $34.1 million, an increase of $13.8 million and $30.6 million compared to the same periods last year.
- At June 30, 2024, RNG Pending Monetization totaled $20.7 million.
Operational Highlights
- RNG produced was 0.9 million and 1.7 million MMBtu for the three and six months ended June 30, 2024, an increase of 50% and 42%, compared to the prior-year periods.
- RNG sold as transportation fuel was 18.7 million and 35.1 million GGEs for the three and six months ended June 30, 2024, an increase of 70% and 82% compared to the prior-year periods.
- The Fuel Station Services segment sold, dispensed, and serviced an aggregate of 36.6 million and 71.6 million GGEs of transportation fuel for the three and six months ended June 30, 2024, an increase of 3% and 5% compared to the prior year periods.
Guidance
- Maintaining 2024 Adjusted EBITDA between $90 million and $100 million.
- RNG production is expected to range between 4.0 and 4.4 million MMBtu, compared with our previous guidance of 4.4-4.8 million MMBtu, primarily driven by slower than anticipated ramp up of our most recent facilities.
- RNG projects placed into construction in 2024 is maintained to be at least 2.0 million MMBtu of annual design capacity3.
- Capex is maintained at $230.0 million for 2024.
- Growth in Fuel Station Services Adjusted EBITDA is maintained between 75-90% in 2024
Construction Update
- The Sapphire RNG project is mechanically complete. Commissioning has begun and Commercial operations are expected to begin in the third quarter. This project represents approximately 0.8 million MMBtu for OPAL Fuels’ 50% ownership share of annual design capacity.
- The Polk County (Florida) RNG project continues to be on track to commence commercial operations in the fourth quarter of 2024. This project, owned 100% by OPAL Fuels, represents approximately 1.1 million MMBtu of annual design capacity.
- The Atlantic RNG project is on schedule and is expected to commence commercial operations in the third quarter of 2025. This project represents approximately 0.3 million MMBtu for OPAL Fuels’ 50% ownership share of annual design capacity.
- The Cottonwood RNG project entered construction in May. This project, owned 100% by OPAL Fuels, represents approximately 0.7 million MMBtu of annual design capacity.
- The Burlington RNG project has begun construction. This project, 50% owned by OPAL is the second RNG project with joint venture partner South Jersey Industries, represents approximately 0.46 million MMBtu for OPAL Fuels’ share of annual design capacity.
